NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Federal Aid and Equality of Educational Opportunity: Evidence from the Introduction of Title I in the South

Elizabeth U. Cascio, Nora E. Gordon, Sarah J. Reber

NBER Working Paper No. 17155
Issued in June 2011
NBER Program(s):Children, Development of the American Economy, Economics of Education, Public Economics

Title I of the 1965 Elementary and Secondary Education Act substantially increased federal aid for education, with the goal of expanding educational opportunity. Combining the timing of the program's introduction with variation in its intensity, we find that Title I increased school spending by 46 cents on the dollar in the average school district in the South and increased spending nearly dollar-for-dollar in Southern districts with little scope for local offset. Based on this differential fiscal response, we find that increases in school budgets from Title I decreased high school dropout rates for whites, but not blacks.

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Document Object Identifier (DOI): 10.3386/w17155

Published: “Local Responses to Federal Grants : Evidence from the Introduction of Ti tle I in the South” (with Nora Gordon and Sarah Reber), American Economic Jour nal: Economic Policy , 5(3), 126-159, August 2013.

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